John Keells Holdings reported a 26% increase in first-quarter EBITDA to Rs. 16.35 billion, driven by gains in transportation and consumer foods, though exchange losses and Middle East travel disruptions weighed on overall profitability.

Sri Lanka's largest conglomerate, John Keells Holdings PLC, recorded robust first-quarter earnings for the 2026/27 financial year, with group revenue climbing 24% to Rs. 141.65 billion compared to the prior year. EBITDA expanded by 26% to Rs. 16.35 billion, while profit before tax grew 31% to Rs. 4.08 billion. However, the company faced significant headwinds from foreign exchange losses totalling Rs. 1.89 billion and reduced tourism activity stemming from Middle East geopolitical tensions.

The transportation segment emerged as the strongest performer, with EBITDA surging 223% to Rs. 5.01 billion, primarily driven by Lanka Marine Services and Colombo West International Terminal. The consumer foods division also demonstrated resilience, with EBITDA increasing 21% to Rs. 1.52 billion, buoyed by strong volume growth in beverages and confectionery products. The company announced its entry into the quick-service restaurant market through a Wendy's franchise arrangement, with the first outlet expected to open by December 2026.

Retail operations showed mixed results, with overall EBITDA declining 16% to Rs. 6.16 billion due to weaker performance at the automotive division. However, the supermarket business expanded positively, with same-store sales growth of 13% and the Keells network reaching 150 outlets. The leisure segment continued to struggle, though City of Dreams Sri Lanka achieved positive EBITDA of Rs. 389 million, reflecting contributions from hotel, casino and retail components. Financial services EBITDA rose 9% following Nations Trust Bank's integration of HSBC's retail banking operations.

Chairman Krishan Balendra attributed much of the exchange loss to rupee depreciation on foreign currency loans at City of Dreams Sri Lanka. Despite these challenges, the company's profit after tax increased 8% to Rs. 773 million. Balendra noted that macroeconomic stability and continued IMF programme progress supported overall business confidence.